Exclusivity over the Tiouit Mine & Tailings...

AIM: KEFI 
26th July 2011

                               KEFI Minerals Plc                               

                      ("KEFI Minerals" or the "Company")                       

 EXCLUSIVITY OVER THE TIOUIT MINE AND TAILINGS RETREATMENT PROJECTS IN MOROCCO 

  * Agreement entered into giving KEFI Minerals a period of exclusivity over
    the Tiouit Gold-Copper Mine (the "Tiouit Mine") and associated tailings
    retreatment project.
   
  * A non-JORC compliant report, dated February 2011, estimates the three
    tailings dams contain a total of 285,000m3 (or approximately 460,000
    tonnes) at 3 to 4g/t gold and 20 to 30g/t silver. Significant potential
    remains in the remnant ore in the underground mine.
   
KEFI Minerals, the AIM-quoted gold and copper exploration company, announces
that it has been granted a period of exclusivity to carry out due diligence
investigations in order to assess whether to enter into a joint venture to
develop the projects at the Tiouit Mine.

The period of exclusivity was acquired by KEFI Minerals for $250,000 from the
Moroccan company, Roche Invest SARL, ("Roche") and permits both parties to
evaluate and determine if they wish to proceed to form a joint venture in order
to develop either or both projects. The Agreement sets the framework for a
strategic alliance between the two companies to evaluate additional mining
opportunities in Morocco and the African region.

Gold mineralisation was first discovered at Tiouit in 1946. Mining operations
were carried out intermittently from 1950 to 1964. Approximately 1 million
tonnes of ore have been mined historically at Tiouit with an average recovered
grade of 7.9g/t gold, 67g/t silver and 0.45% copper. Approximately 720,000
tonnes of tailings were generated by previous mining operations and stored in a
number of discrete "dry stacked" tailings dams at surface.

A non-JORC compliant Technical Report on Tiouit was completed in February 2011
by "Solumines" of Canada. Solumines estimated from a total station topographic
survey, with one reading per metre, that three of the tailings dams contain a
total of 285,000m3 (or, at a bulk density of 1.6, approximately 460,000
tonnes). Sampling by Solumines from 0 to 1m depths and from four drill holes
confirmed previous sampling (by CRM, URSTM and Met Chem - see below) results of
3 to 4g/t gold and 20 to 30g/t silver in these three tailings dams.
Metallurgical testwork performed by three independent laboratories show up to
86% gold recovery from the tailings by regrinding and cyanide-in-leach or
cyanide-in-pulp processing. This work was carried out by "CRM"- Centre de
Recherches Minérales, Canada in 1989; "Met-Chem", Canada in 1998; "URSTM"-
Université du Quebec en Abitibi-Temiscamingue in 2008.

The remainder of the tailings are buried beneath shallow waste cover or under
the dilapidated processing plant infrastructure. A significant portion of the
buried tailings may also be accessed for retreatment.

Significant potential remains in the remnant ore and in unmined veins in the
underground mine. Narrow-vein mining techniques employed in the past resulted
in excessive dilution of mined grades. The veins range from 0.5m to 6m in
thickness, with the average mined thickness about 1.5m to 2.0m. This dilution,
coupled with poor metallurgical recoveries for gold from flotation of copper
minerals, resulted in many unmined panels which are economic at current metal
prices and improved selective mining techniques.

Exclusivity Period

KEFI Minerals has acquired exclusivity for a period of five months to:

  * conduct a Definitive Feasibility Study to evaluate the retreatment of gold
    and silver contained in previous mine tailings; and
   
  * to initiate a Pre-Feasibility Study on re-starting the underground mining
    operations at the Tiouit Mine.
   
Depending upon the outcome of the feasibility studies, KEFI Minerals will
decide whether or not to proceed to enter into a joint venture with Roche in
connection with the processing of the mine tailings and/or recommencing
underground mining operations at the Tiouit Mine.

The expectation is that Tiouit would be the initial project between the parties
as part of a broader strategic alliance in the African region and each party
has undertaken to seek to work together on Moroccan opportunities on a
collaborative basis.

Exploration Potential

The Tiouit Mine is located in the Eastern Anti-Atlas Mountains of Morocco and
the mineralisation is hosted in a series of flat lying quartz veins within
granitic rocks of Precambrian age.

Numerous high-grade gold veins which extend up to 800m along strike have been
intersected by shallow surface and underground drilling at the Tiouit Mine
which have not been followed up or fully evaluated. Numerous vein systems have
also been mapped and rock chip sampled in surface trenches, many of which
report high gold grades and have not been drill tested.

KEFI Minerals' Managing Director, Jeff Rayner, commented:

"The Tiouit Mine represents an excellent opportunity for KEFI Minerals to
quickly become a gold producer. Operations may be targeted to commence with the
reprocessing of "low risk" gold tailings at a relatively low capital cost, with
the net proceeds of that project being utilised for the development of the
high-grade gold, silver and copper ore from the underground mine.

"The exploration potential of the Tiouit licences is also considered to
indicate significant upside near the mine as well as the mine corridor.

"Our strategic alliance with Roche will enable KEFI Minerals to evaluate
further advanced exploration and mining opportunities in Morocco and the
African region".

Enquiries:

KEFI Minerals

Jeffrey Rayner [phone]

Fox-Davies Capital

Simon Leathers [phone]

Bishopsgate Communications

Nick Rome [phone]


Competent Person Statement

References in this announcement to exploration results and potential have been
approved for release by Mr Jeffrey Rayner. Mr Rayner is a geologist and has
more than 25 years' relevant experience in the field of activity concerned. He
is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and
has consented to the inclusion of the material in the form and context in which
it appears.

About Roche Invest SARL

Roche Invest SARL is owned by a private group which is involved in a number of
service and industrial projects including in the past downstream processing of
perlite in Morocco.

Roche Invest acquired the five Mining Permits that covered the Tiouit mine and
the rights to treat the tailings stored at surface in 1998. The Mining Permits
have reverted to Research Permits due to cessation of mining activity and are
valid to 2013, where they can be renewed for a further four years or converted
to Mining Licences, and are subject to a 1.5% net smelter return from metals
produced and sold from future production.

About KEFI Minerals

KEFI Minerals commenced trading on AIM in December 2006 and was formed with the
aim of creating shareholder value through the discovery and exploitation of
gold and copper deposits.

In the Kingdom of Saudi Arabia, KEFI Minerals has a minerals exploration joint
venture with leading Saudi construction and investment group Abdul Rahman Saad
Al-Rashid & Sons Company Limited ("ARTAR"). KEFI Minerals is the operating
partner with a 40% interest and the joint venture's primary target is the
discovery and development of a >1 million ounce gold deposit in the
under-explored Precambrian Shield in Saudi Arabia.

In Turkey, KEFI Minerals continues to explore its current portfolio of
properties prospective for copper and gold deposits as well as evaluating
further opportunities.

KEFI Minerals' Board of Directors is comprised of Mr. Harry Anagnostaras-Adams
(Chairman), Mr. Jeffrey Rayner (Managing Director), Professor Ian Plimer
(Deputy Chairman) and John Leach (Finance Director).

Further information on KEFI Minerals is available at www.kefi-minerals.com and
the Company's AIM code is "KEFI".

                                    -Ends-